Head-To-Head Analysis: Banco Bradesco (BBD) vs. The Competition

Banco Bradesco (NYSE:BBD) is one of 85 public companies in the “BANKS – FOREIGN” industry, but how does it compare to its peers? We will compare Banco Bradesco to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Banco Bradesco and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	3	0	2.75
Banco Bradesco Competitors	1350	4442	4760	232	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 9.90%. Given Banco Bradesco’s peers higher probable upside, analysts clearly believe Banco Bradesco has less favorable growth aspects than its peers.

Profitability

This table compares Banco Bradesco and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.19%	13.78%	1.11%
Banco Bradesco Competitors	18.23%	13.30%	1.07%

Insider & Institutional Ownership

25.4% of shares of all “BANKS – FOREIGN” companies are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Comparatively, 4.9% of shares of all “BANKS – FOREIGN” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. Banco Bradesco pays out 7.7% of its earnings in the form of a dividend. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.3% and pay out 38.3% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Banco Bradesco and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	9.42
Banco Bradesco Competitors	$1,083.69 billion	$7.21 billion	11.41

Banco Bradesco’s peers have higher revenue and earnings than Banco Bradesco. Banco Bradesco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Banco Bradesco has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Banco Bradesco’s peers have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Summary

Banco Bradesco peers beat Banco Bradesco on 10 of the 15 factors compared.

Banco Bradesco Company Profile

Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segments, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.